Alternative payment technologies march 2013

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A review of some of Bitcoin's forks / alt currencies, Ripple included.

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Alternative payment technologies march 2013

  1. 1. Alternative Payment TechnologiesA few alternatives to Bitcoin Ron Gross ron@bitcoil.co.il
  2. 2. Imitation is Flattery• Only 21,000,000 coins• Bitcoin is open source• You can change the code and create Bitcoin2 with more coins?! Well, it already happened … 15+ times in the last 2 years.
  3. 3. Bitcoin Alternatives (“alts”) Namecoin Solidcoin LitecoinOpen Transactions Devcoin IxCoin PPCoin Tenebrix Freicoin BBQCoinCoiledCoin Rucoin BitcoinX Ripple
  4. 4. Modifications• Number of coins• Inflation schedule• Mining algorithm• Mining speed• New non-monetary operations• Support for many currencies (P2P dollars and euros)
  5. 5. Namecoin Launched April 2011• Motivation: Free the internet• Distributed Domain Names (piratebay.bit)• New operations: Register/renew/list name• “Merged Mined” with Bitcoin
  6. 6. Litecoin Launched Oct 2011• Motivation: Everyone is a miner• Bitcoin mining was only done by strong graphics card• Soon dominated by custom costly hardware (ASIC)• Litecoin changed the mining algorithm so normal computers can mine
  7. 7. PPCoin Launched Aug 2012• Motivation: Remove the miners• Bitcoin mining costs money for hardware and electricity• Let people mine by holding PPCoins (In addition to miners)• Complicated security model
  8. 8. Freicoin Launched Dec 2012• Motivation: Tax the rich• Today, the rich get richer• In Freicoin, the rich get poorer• Negative interest (demurage)• Money disappears from you and goes to miners
  9. 9. Ripple Launched Jan 2013• Motivation: Replace banks but not your currency• Not a blockchain, not a fork!• Unlike the others, a strong startup with high profile personnel.• Represents money as debt/trust/IOUs
  10. 10. RippleBob Charlie Jane
  11. 11. Ripple $100 trust $70 trustBob Charlie Jane $200,000$1,000,00 trusttrust Gateway = Bank
  12. 12. Ripple
  13. 13. Summary• Exciting times for crypto-currencies!• Lots of noise, scams, and dead projects• A few interesting, strong projects• Still small compared to Bitcoin
  14. 14. Questions?
  15. 15. References• https://bitcointalk.org/index.php?board=67.0• https://en.bitcoin.it/wiki/Category:Alternative_cryptocurrencies• https://ripple.com/wiki/• http://bitcoin.stackexchange.com/questions/tagged/ripple• http://bitcoin.stackexchange.com/questions/tagged/alternatives

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